Dynamic keyword insertion (DKI) in Google Ads: how and when

Dynamic keyword insertion (DKI) is a Google Ads feature that automatically places the keyword that triggered your ad into your ad text, using code like {KeyWord:CRM Software}. If the keyword does not fit, Google shows the default text after the colon instead. DKI is worth it on tight, long-tail ad groups and a liability on broad ones.

Below you get the syntax and its capitalisation variants in one table, the setup in six steps, and the cases where you are better off leaving it alone.

Work it out yourself: see how many leads your budget delivers with our free Google Ads budget calculator.

How we checked: the syntax and the fallback behaviour were checked against Google Ads Help on 17 October 2026.

What is dynamic keyword insertion?

Dynamic keyword insertion is an ad feature that automatically adapts your ad copy to the keyword that matched the search. If someone searches for “crm for accountants” and that is a keyword in your ad group, Google can show that exact term in your headline instead of a generic one. The idea behind it is simple: someone who sees their own words reflected back in your ad feels faster that you have precisely what they are looking for.

In practice it works with a snippet of code in your ad, for example {KeyWord:Accounting software}. According to Google’s help page on keyword insertion, the inserted text is the ad group keyword that caused your ad to show, and the term after the colon is your default text: it appears when the text cannot be replaced by a keyword. You can use it in headlines, descriptions and the display path of a responsive search ad. It is not a standalone strategy, but a tool within your broader Google Ads approach.

How does capitalisation work in the DKI code?

The way you write the word “keyword” inside the braces sets the capitalisation of the inserted text. Google documents the variants below. The examples use our own illustration: an ad group keyword “crm for accountants”, with the code placed alone in a headline and “CRM Software” as default text.

Two things stand out. First, KeyWord turns an acronym like “crm” into “Crm”, which looks sloppy; KEYWord fixes that when the acronym is the first word. Second, a headline has a limit of 30 characters, a description 90 and a display path 15. Every character of fixed text you put around the code (“Compare ”) eats into the space for the keyword, so long keywords fall back to your default text more often.

Why does DKI affect your relevance and cost per click?

The value of DKI lies in relevance. The better your ad matches the search term, the more relevant Google finds your ad, and relevance feeds through into two things that directly hit your return.

• Quality score. A more relevant ad can raise your quality score, and ad relevance is one of its components. A higher quality score means you pay less for the same position than a competitor with a weaker ad.
• Click-through rate. Because searchers see their own words in your headline, your ad stands out more and the chance of a click goes up. That can increase your CTR without you having to raise your bid.

That is no small detail in expensive sectors. WordStream’s industry benchmarks put average cost per click in legal services above 6 dollars, with “lawyer” and “attorney” among the most expensive keywords on Google. The higher your click price, the more every extra percentage point of relevance is worth. DKI is one of the levers you can pull there, alongside your regular work on PPC and SEA.

Honesty demands one caveat: a higher CTR is a means, not an end. In B2B, an ad with a slightly lower click rate that brings in the right decision-maker beats a popular ad full of clicks from people who will never request a quote. Steer on qualified enquiries and revenue, not on clicks or impressions in themselves.

When does DKI pay off in B2B, and when does it not?

DKI is not a switch you flip everywhere. It works best under clear conditions, and it works flat out against you if you ignore them.

DKI pays off when:

• Your keywords are specific and long, such as “inventory management software for wholesalers”. Those are terms that betray buying intent, as long as you keep the code in a short headline so they still fit.
• Your ad groups are tightly grouped around closely related keywords, so the inserted term always connects logically to the rest of your copy.
• You want to cover many related variants of a term with fewer ads, which keeps management simpler.

DKI does not pay off when:

• You use broad keywords such as “software” or “advice”. Broad terms produce awkward or irrelevant ads and give DKI nothing relevant to insert.
• Your ad group contains a grab bag of services. If “accounting”, “tax advice” and “payroll administration” sit in the same group, the wrong term can end up in the wrong context.
• You would bid on competitors’ brand names or protected terms. Google states that trademarks restricted under its Trademarks policy will not be inserted, so your ad falls back to default text at best, and risks disapproval at worst.

And sometimes the honest answer is: do not advertise at all. If you have a very small niche, low search volume or audiences without real buying intent, you will not fix that with a clever ad trick. Your budget is then often better spent on other channels. Whether SEO or Google Ads is the right choice for you depends on that market situation, not on the technique.

How do you set up dynamic keyword insertion? (6 steps)

DKI stands or falls with control. These steps keep your ads relevant and grammatically correct.

Step 1: Build a tight keyword list per ad group

Choose specific, related terms that show buying intent and avoid short, broad keywords. Start with thorough keyword research. Check the keyword list of the ad group where you plan to use DKI: every keyword in it will end up in your headline sooner or later, so read it as ad copy.

Step 2: Type the DKI code in the responsive search ad editor

Open a responsive search ad (new or existing) and click into a headline field. Type a brace { and choose Keyword insertion from the drop-down. You can also type the full code by hand, such as {KeyWord:CRM Software}.

Step 3: Set the default text and the capitalisation

In the dialog, fill in the Default text and choose the capitalisation: Title case, Sentence case or Lower case, then click Set. Make sure the default text delivers a clean, complete headline on its own, and that it plus any fixed text stays within 30 characters.

Step 4: Check the ad preview before you save

The preview on the right side of the editor shows how the ad looks with the default text. Read it once with your longest keyword in mind: if that keyword does not fit, this default version is what people see.

Step 5: Watch the search terms and add negative keywords

With negative keywords you prevent your ad from appearing for irrelevant or brand-bound terms that would pollute your copy. Review the search terms report weekly in the first month: it shows which searches matched your DKI keywords, and which ones you do not want behind a headline built from your keyword. Also watch the grammar: a headline like “Top quality {KeyWord}” can derail into strange sentences, so split singular and plural into separate ad groups where needed.

Step 6: Test and measure on conversions

DKI does not excuse you from A/B testing. Test a DKI headline against a fixed headline and look above all at conversions and enquiries, not only at clicks. In a responsive search ad, the asset details show how each headline performs next to the others.

It comes down every time to not blindly trusting automation. The feature fills in text, but you remain responsible for what the searcher ultimately reads.

What are the risks of DKI?

The biggest pitfall is that DKI generates ads you would never have written yourself. Four risks come up most often:

• Awkward or unintentionally funny headlines. A badly chosen term can lead to sentences like “Top quality Agency!” that undermine your credibility and damage your conversion.
• Terms that are too long drop out. Long keywords that just barely do not fit are replaced by your default text. If that default text appears too often, the relevance advantage of DKI disappears.
• Broken code. WordStream’s DKI guide lists the classic slip-ups: a wrong word instead of “KeyWord” inside the braces, square brackets instead of braces, or a space between KeyWord and the colon. Google then does not swap in the keyword and the raw code ends up in your headline.
• Brand and policy problems. Restricted trademarks are not inserted, misspelled keywords are corrected or replaced by the default text, and your ad must still comply with Google’s policies after the keyword is inserted. DKI is also not available for healthcare and sexual content.

None of these risks is insurmountable, but they require maintenance. A small team that adjusts quickly and reviews the search terms weekly catches these problems before they cost budget. DKI is, in other words, a feature for those who keep control, not for those who want to “set it and forget it”.

Frequently asked questions about dynamic keyword insertion

Does DKI insert the search term or the keyword?

The keyword. Google inserts the ad group keyword that caused your ad to show, not the literal search query. With exact match the two are often the same; with phrase and broad match the search term can differ a lot from what appears in your ad.

What happens when the keyword is too long?

Your default text appears instead. A headline is limited to 30 characters, a description to 90 and a display path to 15, including any fixed text around the code. Keep the default text short and write it as a full headline.

What is the difference between static and dynamic ads?

A static ad always stays the same, regardless of what the user types. A dynamic ad adapts to the search and can change the headline or copy to match what the searcher was looking for more closely. DKI is the technique that makes that adapting possible within your own ad text.

Should I always use DKI if I run Google Ads?

No. DKI is valuable for specific keywords with buying intent and tightly grouped ad groups, but useless or even harmful for broad terms. Use it selectively, not as a default setting.

Does DKI increase my quality score?

It can help. Because your ad becomes more relevant to the search term, your quality score can rise, which lowers your effective cost per click. It is no guarantee: the relevance of your landing page and your click-through rate count just as heavily.

Does DKI also work for B2B with a long sales cycle?

Yes, but with realism. In B2B nobody buys straight after one click. DKI brings the right people in more relevantly, but you measure your success by qualified enquiries further down the funnel, not by the click rate at that moment.

Want DKI used the right way?

Dynamic keyword insertion can make your ads more relevant and cheaper, but only with the right keywords, a watertight default text and tight management. Used wrongly, it costs you credibility and budget. We look honestly at whether DKI adds anything in your situation, and we say so too if your market or search intent simply is not suited to it. No chasing clicks, but steering on qualified leads and revenue. Contact us